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How to Raise Your Trading Performance Using a Checklist
14:10, 19.09.2020

Trading success depends on many factors. One of the best ways to become a professional trader is to gain self-discipline, patience, and use a couple of useful tricks. Today I’ll tell you about one of such tricks that will take your trading performance to a whole new level.

Trading success depends on many factors. One of the best ways to become a professional trader is to gain self-discipline, patience, and use a couple of useful tricks. Today I’ll tell you about one of such tricks that will take your trading performance to a whole new level.

Why Do You Need a Checklist

On Forex everything here is based on following a plan. But the beginner can’t keep in mind that much information. Unless you are a ''rain man'', then in order to follow your strategy, you need to constantly return to the rules of your plan. That’s where the checklist comes in handy.

Basically, it’s a list of requirements for entering or exiting a trade. You need to print or write down and hang this checklist in a prominent place. This way it will be in front of your eyes every time you enter or leave the market to make sure that you are not missing out on anything.

How to Build a Checklist

Each trader has a unique list as it is based on an individual trading strategy. To build one, you need to write out every single requirement for entering or exiting a transaction. Turn them into ''yes/no'' questions or simple statements.

For example, your checklist might look like this:

  • Is it the European or American trading session?
  • Is there a signal to enter a trade from indicator #1 (breakout, candlestick pattern, etc.)?
  • Is the signal confirmed by indicator #2 (RSI Indicator, etc.)?
  • Is there a price level around?
  • Is the risk-to-reward ratio 1:3?
  • There are no important news releases in the near future, etc.

This list is approximate as everyone has their own conditions. Someone trades in a different trading session, someone uses different signals and risk management rules. Only the use of the checklist remains unchanged.

How to Use It

Using a forex checklist is easy. Pick up a pencil or a pen and answer each question on the list. If every single answer is ''Yes'' then open the trade. If at least one answer is ''No'', wait for a new trading opportunity.

The main thing in this trick is not to miss a single rule when compiling a checklist, as well as to use it for every transaction, without exception.

It might be hard to believe, but the checklist will make your trading easier and bring your trading performance to a much higher level. You will stop basing your trading decisions on emotions. Over time, this list will stick to your memory. You will automatically make informed decisions every time and quickly improve your trading results.

How to Raise Your Trading Performance Using a Checklist
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